All electricity customers in Ontario pay a Global Adjustment (GA), which covers the cost of building new electricity infrastructure in the province, regulated rates paid to electricity suppliers under contract and the costs of delivering the province’s energy efficiency and conservation programs. In general, the GA is lower when the Hourly Ontario Energy Price (HOEP) is higher, and vice-versa.
All electricity customers in Ontario pay Global Adjustment as either a Class A or Class B customer.
Class A Customers
Class A customers are medium and large businesses that are able to participate in the Industrial Conservation Initiative (ICI). The GA paid by a Class A customer is based on its share of total demand during Ontario's top five peak demand hours. For example, if a Class A customer is responsible for two per cent of Ontario’s peak demand, they will be billed for two per cent of the province’s total GA costs.
Class B Customers
Most electricity customers in Ontario are Class B. Once the amount of GA billed to Class A customers has been settled, the remainder is passed onto Class B customers.
For residential customers and most small businesses, GA is included in time-of-use or tiered rates
For medium-sized businesses, GA appears as a separate line item on their electricity bill